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Brand Building by Pixar ... The Secrets of 21st Century Branding by Peter Fisk

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+genius Brand Building by Pixar Peter Fisk explores a new world of branding, and explores the creative process of Disney-Pixar to build brands that inspire and engage people more deeply. Buzz: “Right now, poised at the edge of the galaxy, Emperor Zurg has been secretly building a weapon with the destructive capacity to annihilate an entire planet! I alone have information that reveals this weapon’s only weakness. And you, my friend, are responsible for delaying my rendezvous with Star Command!” Woody: [pauses and looks incredulous] You … are … a … toyyyyyy! You aren’t the real Buzz Lightyear … you’re … you’re an action figure. You are a child’s play thing! Buzz: “You are a sad, strange little man, and you have my pity.” Pixar is an amazing business. Built on imagination and creativity, it harnesses the potential of digital technologies to create the most engaging characters and films. In 1979 Star Wars creator George Lucas and computer scientist Ed Catmull established the foundations of what was initially a digitally-enabled special effects business. Seven years later Steve Jobs acquired the studio, renamed it Pixar, and gave birth to some of the most successful animated films - like Toy Story, Finding Nemo and The Incredibles. Today it is one of the world’s most creative businesses. peterfisk@peterfisk.com www.thegeniusworks.com +genius

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+genius Brands need bigger ambitions Similarly today’s most successful brands have moved on from special effects and advertising, much more than a name and logo, to be an enduring narrative, to embrace the digital and human world, to capture the creative and emotional essence of a business and its customers. Marketers are no longer support functions for sales, or brief writers for creative agencies. They are the creative talent, making sense of the world around them, turning insights into ideas into innovations. They are the driving force of business, the champion of customers, and the guardians of incredibly valuable assets called brands. New market leaders: Brands seizing a new world of opportunities From Apple to Zappos, Aberchrombie and Fitch to Better Place, Paul Smith and Shanghai Tang, Air Asia and Virgin Galactic … the most successful brands have bigger ambitions. The best brands don’t limit themselves to what they do, they are not just labels of ownership, distinguishing one commoditised product or service from another. They define themselves on customer’s terms, about their aspirations and applications – about benefits rather than features, if you like. These brands recognise the wider impact they can have on customers and society, rather than just communicating relevance and difference at the point of sale. They define what they enable, rather than what they are. In fact they are more than communication tools. They give business purpose, shared with customers. They give people confidence, bring people together, and enable them to achieve more. They make life better. peterfisk@peterfisk.com www.thegeniusworks.com +genius

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+genius World changing, game changing Why is it not enough for a brand to be a passive name, with a distinctive logo, a trademark that rarely changes, a packaging or communication device? To answer this we need to look at how the world, its markets, and attitudes have changed. As Pablo Picasso said, “times of turbulence are the most exciting times, because everything changes”. Look around us everything is changing at incredible speed … customer priorities, competitive positions, commercial structures, have all been shaken up. Markets are no longer absolute, bordered and predictable. This is a world in need of a new approach to branding, and different ways of activating and managing them. You might call it a “VUCA world” – volatile, uncertain, complex and ambiguous – but at the same time vibrant, unreal, crazy and astounding … a time to keep your head down, avoid risk and change, or a time to look at the amazing opportunities all around us? We all now compete in global, always-on markets, whether we intend to, or not. Sectors converge and new whitespaces emerge. Customers have incredibly high demands and expectations, but little trust or loyalty. Disruption is normal, uncertainty is expected. Virtuality is the reality, combining speed, interactivity and reach At the same time, business is more human than ever, emotional and empathetic. World changing: New markets, new opportunities, new priorities peterfisk@peterfisk.com www.thegeniusworks.com +genius

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+genius Whilst many of us struggle to shake-off the hangover of economic downturn, others realise that it was just the crying pains of a changing world. Seismic shifts in power and influence have changed the rules of our game. The shift from west to east is not just about money, but about knowledge and culture too. The hot fashions are in Buenes Aires, the best green tech is in Shanghai, the top web designers in Mumbai, and the most venture capital in Shenzen. Technology has empowered customers like never before – more informed, more choice, and more promiscuous. Brands need to redefine themselves in terms of what they do for people, and then deliver it on customers terms - when, where and how they want. Collaboration (in the forms of crowdsourcing, co-creation and partnerships) with customers, supplier, distributor and affinity brands has become the norm – creating more flexibility, and helping to build more relevant and engaging solutions. Markets have fragmented with more specialism, yet still large when considered globally. Being special to a niche markets is far better than being average to everyone (and special to nobody). New markets emerge, as categories collide, and new possibilities emerge. Gone are the rigid market boundaries, the notion of your home market being the closest to you, and of customers and competitors as absolutes. Gone is the assumption that the future is an extrapolation of your past. Are you focused on the big opportunities? And if not, why not? Over the next 5 years, female consumers will grow faster than China and India. Within 20 years, the E7 (Brazil, Russia, India and China – plus Indonesia, Mexico, Turkey) will be bigger than G7, renting will replace buying, education and healthcare will transform, sustainability will be compulsory, and water will be the new gold. Our marketing metrics have to change too. Market share, for example, becomes largely irrelevant. Profit is no longer a consequence of volume. Share price is about potential more than performance. Value networks, enabled by the likes of Alibaba and Li & Fung, replace the need for owned production, and the headache of inflexible production costs. 3D printing enables real customisation of cars and clothing, design and manufacturing for cents and within hours. Forget core competencies, you can do anything you want. Welcome to the ideas world The possibilities are limited only by your imagination. Ideas become the currency of success. New markets, like smartphones, are waiting to be defined. Nobody wanted to play on a Nintendo Wii until Shigeru Miyamoto designed it. Nobody needed an iPad until Jonny Ive delivered it. Ideas need to be bigger and better than ever before. The best ideas capture the attention of customers with infinite choice. Want outplays need, and viral ideas spread freely between people - rather than being pushed at audiences through interruptive campaigns using expensive, passive media. In this ideas world, beating the competition is nothing to do with the size of your business, or your marketing budget, but about thinking smarter. peterfisk@peterfisk.com www.thegeniusworks.com +genius

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+genius Out-thinking competitors is achieved by seeing the future more clearly, bringing together the right partners and networks to secure it, better understanding emerging issues and insights and developing the most compelling propositions and experiences. Brands are about ideas, marketers are the creative talent. Pixar Studios: The world’s most creative business Pixar, therefore, is a fabulous metaphor for brand-building and marketing in this new world. Like the best movies, brands are about ideas more than effects, stories more than icons, enabled by software more than hardware, touching people more deeply, and memorably. Building a creative business Emeryville lies just across the bay from San Francisco, and this is where the story of Pixar, Buzz and Woody, Nemo .. and Mickey Mouse too, unfolds … Steve Jobs is much more than a tech geek. He is a man of extreme vision, creativity and commerce, and ability to get the best out of people. In 1986, having temporarily let go of his Apple passion (that’s a different story!), he set about transforming his newly acquired animation business. He moved it from making and selling hardware, to designing and distributing software. He brought in John Lasseter who had a background in off-beat mini-animations, to drive his vision into reality. The two men shared a vision, not just of how they could make great movies, but of how they could transform an industry, bringing together the best technologies with a human touch (maybe an echo of the iPod, a decade later). peterfisk@peterfisk.com www.thegeniusworks.com +genius

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+genius Toy Story: The first of the Pixar blockbusters After much rethinking and developing, in particular perfecting the proprietary Renderman animation process, and funded by making quirky ads for Kelloggs and IBM, Pixar was ready to take on the world. Christmas 1995 saw the much anticipated launch of Toy Story. It received tremendous critical acclaim, generating $362 million in worldwide box office receipts and earning Lasseter an Oscar and Academy Award. On its success, Lasseter built a creative team of highly skilled animators, a story department and an art department. But he didn’t just want great technicians, he wanted people with insight and imagination. He sought animators with superior acting ability, people who could sense how characters and audiences would feel, deeply and emotionally. The new Pixar University quickly became the training school for animators from around the world, and Pixar developed complete creative teams in-house, whilst the non-creative tasks were outsourced. More blockbuster animations quickly followed ... A Bugs Life, Toy Story 2, Monsters, Inc., Finding Nemo, and The Incredibles. The six films combined grossed more than $3.5 billion at box offices worldwide, the most successful animated films of all time. With each success, Pixar learnt more and invested in its process, brands and audiences. It revolutionised the technology of filmmaking, it transformed the expectations of audiences, and it gave children (and adults) across the world, a new genre of heroes. Mickey meets Monsters Inc. In 2006, Pixar became a wholly-owned subsidiary of The Walt Disney Company in a $7.4 billion deal that saw Jobs, who was the majority shareholder of Pixar with 50.1%, take a peterfisk@peterfisk.com www.thegeniusworks.com +genius

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+genius seat on Disneys board of directors, and with 7% of all stock, the largest individual Disney shareholder. A new brand name “Disney·Pixar” was created, and as Chief Creative Officer, Lasseter reports directly to Disney CEO Bob Iger. He became responsible not just for Pixar, but the entire creative activity of the group. Box office performance: Pixar movies, and revenues ($m) The Pixar blockbusters continued, as did the related theme parks and merchandising - a result of carefully building the movie and character brands – personalities that kids loved, and defined their lives by. Cars and Ratatouille, WALL-E and most recently Up all took Oscars or Academy Awards. The stories reflecting a changing world, more global, more technological, more mixed up. The characters resonated with the shifting aspirations of people, imaginative and emotional, not just functional and rational, an eclectic mix of cultures and colours, backgrounds and futures. The stories could be watched and watched again, a virtue amidst disposable media. Creative Fusion Pixar Studios has evolved into a workspace that defines and inspires the creative process. Jobs was never a great movie maker, but he knew how to bring 1200 creative people, and their collective talents, together. He designed big open spaces, atriums with fabulous cafes and a wood-fired pizza oven. He encouraged designers to construct (and decorate) their own wooden sheds rather than sterile work stations, and provided scooters to help people get around faster. He recognised that the organisation needed to “loosen up”, to be more fluid and human, in order to drive collaboration and creativity. One of the unique aspects of the business, Pixar University, has become much more than a training school for new entrants, rather a constant source of eclectic learning and provocation … from astrophysics and space travel, to conservation in the Amazon, peterfisk@peterfisk.com www.thegeniusworks.com +genius

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+genius knowledge drives insights, drives ideas and inspiration. It creates more rounded, more thoughtful people, and maybe the next blockbuster. Pixar Studios are like a fusion of Hollywood and Silicon Valley, just like Pixar is a fusion of technology and entertainment, art and commerce. Just like in the Googleplex at Mountain View, or Nike Campus in Portland, Pixar Studios has been described as a corporate playground with its own rules and rituals. Lasseter describes these in a very simple way 1. Dream like a child – without prejudice or inhibition, live in a world where anything is possible, and the more fantastic the better. 2. Believe in your playmates – see the best in people, see them as the best people in the world, and together as a team that can do anything. 3. Dare to jump into the water and make waves – don’t be afraid to break new ground, to challenge conventions, break rules, or do what hasn’t been done. 4. Unleash your childlike potential – don’t just think like a child, make those wild ideas happen too. Pixar Studies: Designed to connect and inspire creative people peterfisk@peterfisk.com www.thegeniusworks.com +genius

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+genius Pixar Creativity The Pixar creative process is not unique, but it does beautifully recognise and combine the need for inspiration and perspiration, executed by a loyal and obsessive team. The starting point is an idea. Ideas come in all forms, inspired by all types of insights, but usually impulsive and unstructured. A short paper, or better a visual poster, captures the proposal for a new movie which is then explored by the whole team. Whilst this is a high-tech studios, it is still full of hand-drawings and plasticine models. Dream machine: How to make a movie like Pixar (Source: Creative Genius by Peter Fisk) The process begins has some simple principles 1. Begin with the story – describe the dream, make it relevant and stretching, distinctive and inspiring, and explore how it can become reality. peterfisk@peterfisk.com www.thegeniusworks.com +genius

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+genius 2. Build the set – create the fantasy environment, the staging, the feel and smells, taking time to get all the details right, so that it really is believable. 3. Engage the cast – the people who are going to bring the story to life, in this case the model makers, the voices, the musicians and the producers. 4. Deliver backstage – make sure the creative team have all the support they need, from finance to technology, marketing and sales, and lots of coffee. So what can brands learn from Pixar? Pixar is a digital content business, and in many ways that’s what brands are today. Beyond the products and services which they support, brands are about ideas, stories, relationships and communities, and the capturing and sharing of them increasingly digitally, virtual experiences which become reality. Finding Nemo: Brands can learn much from the movie-making process So here are 12 insights from Pixar, inspiration for every brand and marketer: 1. Imagineering – ideas are the starting point, driven by insight and experience, but more often through imagination often through the creation of a “imagine if” scenario which is gradually scoped out and brought to life from the future back. 2. Creative fusions – this is not an ingredient, but the essence of the whole business, where the creative process defines the organisation, its operational and commercial models, enabled by the fusion of creative talents. peterfisk@peterfisk.com www.thegeniusworks.com +genius

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+genius 3. Deep immersion – thinking like the character, and like the audience, is the skill of the animator – recruiting people who are great actors, who can put themselves inside the heads of others, see and feel, think and act like they would or want. 4. Storytelling – the core narrative that brings together characters and experiences, in a way that adds context as well as the plot, immerses and captures the imagination of the audience, and makes it memorable and talked about. 5. Humanity – whilst technology is essential to a Pixar movie, in terms of production and distribution, it is not what matters most – these are human stories, where the characters tap deep into the emotions and psyche of its audiences. 6. Moving you – a Pixar movie is fun and entertaining, gripping and memorable, but more than anything it moves you – it inspires you, it makes you think, it challenges your prejudices, or makes you cry with happiness 7. Viral infections – these stories are truly contagious, becoming the “must see” for generations of children – more than just advocacy, their stories and the desire to watch them, spread like wildfire. 8. Branded content – the business is a phenomenal example of a large and complex brand architecture that really works, with each brand clear and distinctive - Pixar is a brand, Toy Story is a brand, and Buzz Lightyear is a brand. 9. Personality – at each level, the brands are more about a sense of character, attitude and behaviours, rather than names and logos. Indeed as long as the essence of the brand is strong, the visualisations can flex and change. 10. Content spinning – beyond the movie, licensing each level of brands across many different products, adding to the experience – from theme parks and computer games, to books and clothing – all part of the business model. 11. Never ending – Pixar is a relentless stream of creative success, replicating the model with ever more innovative stories, stories which themselves have no end – living, evolving - Toy Story 3 was just as good as the original. 12. Inspired leaders - a creative business is by definition chaotic and unstructured, but that’s why leadership matters more – an inspiring purpose, a shared direction, confidence and clarity, led by an energising leader. The parallels for brands and marketing are everywhere in Pixar … the pivotal role of the CCO and the creative team within the business, the primacy of audience, the bringing together of talents, the nurturing of ideas, the building of personality, the pursuit of compelling narratives, the dreams and emotions, always delivering on time and to budget. And a relentless stream of success. peterfisk@peterfisk.com www.thegeniusworks.com +genius

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+genius Maybe brands need to own more of their own creativity, rather than being subservient to their agencies. Maybe they need to immerse themselves deeper in the world they are trying to simulate and stimulate, to challenge each other, to unlock and mesh their talents, in a more sustained and evolving way. Indeed the marketing departments of Apple and Zappos are more like creative studios, the hub of business thinking, delivering strategies and innovations, as well as brands and communication. Lassiter describes the process as “telling a great story, but not too predictably” maybe like a marketing programme needs to evolve rather than be a series of quickly- discarded campaigns. He talks of “taking people to another world” which equates to the ability to reframe brands in contexts that have more relevance for audiences, and more scope commercially. He talks about “characters that people develop a deep bond with” which is at the heart of building an emotional connection, doing more for people, creating a brand they love. Of course, it is the whole story of Pixar which is a lesson for brands today, not just the way in which Pixar themselves use their brands. Few brands, few marketing leaders, can have achieved the success of Lassiter and his team, either in terms of global awards or commercial results. Most important, is to apply the lessons of Pixar’s creative process to the challenge of brand building. This is where many marketers are falling behind, and where many business leaders fail to recognise its importance and impact. What’s different about 21st century brands? From Lego to Whirlpool, Donna Karan to Dave Stewart, we can learn from large and small companies, ad agencies and fashion houses, architects and rock stars. Pixar is certainly one of the best. Over 50 chapters we explore the many dimensions of creative excellence, which can be directly applied to the challenge of building and managing brands. First let’s be clear about what creates a great brand today. Brands have come a long way. Look far back to the Babylonians of 3000BC, the Chinese potters of 1500BC, the cattle herders of feudal times, and even the first watermarks of papermakers, and you will find “branding” in action. Fast forward to modern times, in 1886, John Pemberton innovated brand iconography with Coca-Cola, followed by P&G’s mastery of branding as a discipline which it led through much of the 20th century. Yet the paradigm of branding has not moved on much, despite the great thoughts from Levitt and Kotler, to Aaker and Bedbury. Brands have largely remained logos, defined in terms of ownership and identity. The characteristics of successful brands have now changed. peterfisk@peterfisk.com www.thegeniusworks.com +genius

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+genius Brand innovation: Brands needs a more creative, connected and commercial process Defining the 21st century brand The digital and global, transparent and collaborative world demands branding that does more for people. Brands are more than companies, products and services. Brands are more than names, logos and communications. Brands reach beyond transactions and markets. In a world where image and reputation can be built, and destroyed, in an instant, brands need to be stronger, richer, and in the hands of the beholder. This is why the movie- making analogy is useful, and why today’s best brands are “ABCDE”, that is:  Aspirational – Brands capture the dreams and desires of their audience, what they seek to achieve, rather than simply labelling a business, product or service. They establish a richer, more relevant context, based around their application and potential. They are about them (the people) not us (the business).  Bold – Brands are more ambitious, they challenge the norm, they stand out from others and go where others fear or have never imagined. They are iconic, or at least use icons to demonstrate their purpose. They are talked about, questioned, explored and loved, because they are different.  Connecting – Brands build communities, because people ultimately enjoy being with other like them, people who share a similar passion, purpose or experience. Customers don’t want relationships with companies or products, but they do value brands that facilitate their ability to connect and do more with others.  Dramatic – beyond names and logos, product or services, brands have a strong and distinctive idea that is brought to life in more meaningful ways. They capture a peterfisk@peterfisk.com www.thegeniusworks.com +genius

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+genius shared purpose, supported by values which come alive through attitudes and behaviours. The ideas can cross markets and categories, supporting innovation and growth, even with different identities.  Enabling – Brands do more for people, giving them functional means and emotional confidence to do what they never thought possible. Awareness and purchase are just the beginnings of a deeper brand experience. Advocacy, repurchase and ongoing collaboration are steps to a brand to live your life by. Brand innovation in three steps So what is the essence of brand building today? The “BrandLab” process in Creative Genius describes the three essential phases for building brands, or indeed driving any form of creative development in business today. The three phases are  Future Space  Design Studio  Impact Zone. Future Space : Innovating brands from the “future back” (Source : BrandLab from GeniusWorks) Future Space peterfisk@peterfisk.com www.thegeniusworks.com +genius

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+genius Brand innovation starts by thinking from the “future back” … Finding the real issue, recognising the paradoxes, imagining possibilities, exploring potential scenarios, and deep diving for interesting customer insights. New ideas emerge in the margins more than the mainstream, maybe trickling up from emerging markets – improvisation is a great source of ideas – like with M-Pesa in Africa where a new currency emerged as a result of people’s access to mobile phones and ability to send SMS, or Aravind Eyecare where the lack of qualified hospitals and doctors led to an innovative low-cost online solution to curing blindness in India. Searching for ideas and insights, challenging the rules, changing the game … Like Branson and Jobs, carry a notebook with you wherever you go. Design Studio Fusion is key to designing a brand concept: the fusion of function and form, the fusion of business and customer, the fusion of different ideas … connecting the unconnected, learning from other segments, sectors and geographies. More than anything fusion comes through collaboration – working with customers, partners, academics, technologists, other brands, and some weird and unusual people too. Design Studio : “Creative fusions” deliver new brand concepts (Source : Brand Lab from GeniusWorks) Samsung call it the “tae-kuk” … finding a new balance between yin and yang, connecting opposites to achieve more, adding emotion to functionality. From business models to brand architectures, products to customer experiences, everything can be designed better. El Bulli the world’s best restaurant builds its reputation on crazy, unusual fusions of ingredients. Christian Audigier built the Ed Hardy brand sensation by fusing tattoo designs with latest fabrics, styles and licensing models. Impact Zone peterfisk@peterfisk.com www.thegeniusworks.com +genius

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+genius Brands must ultimately deliver results – transform attitudes and reputations, build engagement and drive sales … short and long-term, creating extraordinary value for customers and shareholders. Impact is about launching new ideas into markets, but also about making them work over time. Nike Plus transformed the sportswear brand’s performance through enablement and community, adding technology to shoes that monitor and map your runs, share with others, and created the world’s biggest mass-participation race ever. Skoda is the unlikely hero of Volkswagen, using its deeply loyal following in Eastern Europe to become the portfolios most profitable brand. Impact Zone : Managing the brand system for extraordinary results (Source : BrandLab from GeniusWorks) And then there is Stefani Germatto … better known Lady Gaga, she has been the cultural sensation of recent years, having launched herself to the world in the same week that Lehman Brothers went crashing to the ground. With boldness and attitude she has polarised society, harnessing social networks and digital media to become the most downloaded, tweeted and talked about rockstar in history. To infinity, and beyond Brands are the most valuable assets in business today, and marketers the most valuable talent. Success in a VUCA world depends on how you think, how you seize the potential of technology and opportunities of new markets, and how bold and ambitious you are. peterfisk@peterfisk.com www.thegeniusworks.com +genius

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+genius Peter Fisk is a best-selling author and inspirational speaker, a strategic consultant to leading companies around the world and a business entrepreneur. Peter leads the GeniusWorks, a strategic innovation business based in London and Budapest, Istanbul and Dubai, that works with senior management to “see things differently” – to develop and implement more inspired strategies for brands, innovation and marketing. Gamechanger is a strategy accelerator for leadership teams, Innolab is a facilitated innovation process based on deep customer insights and creative thinking, and BrandVision is a platform to develop better brands and brand portfolios. His best-selling book Marketing Genius explores the left and right-brain approaches to competitive success, and has been translated into more than 35 languages. Customer Genius describes how to build a customer-centric business, Business Genius is about inspired leadership and strategy, Creative Genius is the innovation guide for border crossers and game-changers, whilst People Planet Profit explains how to grow, whilst doing good ethically, socially and for the environment. Peter grew up in the remote farming community of Northumberland, in the North East of England, and after exploring the world of nuclear physics, joined British Airways at a time when it was embarking upon becoming “the world’s favourite airline” with a cultural alignment around customers. He went on to work with many of the world’s leading companies, helping them to grow more profitably by becoming more customer-centric in their structure, operations and leadership. He also led the strategic marketing practice of PA Consulting Group, and was the CEO of the world’s largest marketing organisation, the Chartered Institute of Marketing. He works across sectors, encouraging business leaders to take a customer perspective, and learning from different types of experiences. His clients include American Express and Aeroflot, Coca Cola and Cemex, Lastminute.com and Marks & Spencer, Microsoft and O2, Orange and Red Bull, Shell and Tata Steel, Teliasonera and Turkcell, Vitra and Virgin, Vodafone and Volkswagen. . He was recently described by Business Strategy Review as “one of the best new business thinkers” and is in demand around the world as an expert advisor and energising speaker. For more information go to www.theGeniusWorks.com or email peterfisk@peterfisk.com peterfisk@peterfisk.com www.thegeniusworks.com +genius